MINNEAPOLIS (AP) -- McDonald's Corp. said Friday it has dropped aMinnesota-based egg supplier after an animal rights group releasedan undercover video of operations at the egg producer's farms in three states.

The video by Mercy for Animals shows what the group calls animalcruelty at five Sparboe Farms facilities in Iowa, Minnesota and Colorado. Its images include a worker swinging a bird around by itsfeet, hens packed into cramped cages, male chicks being tossed intoplastic bags to suffocate and workers cutting off the tips ofchick's beaks.

"The behavior on tape is disturbing and completely unacceptable. McDonald's wants to assure our customers that we demand humane treatment of animals by our suppliers," Bob Langert, McDonald's vice president for sustainability, said in a statement.

The move also followed a warning letter to Sparboe Farms datedWednesday from the U.S. Food and Drug Administration that saidinspectors found "serious violations" at five Sparboe facilities of federal regulations meant to prevent salmonella. The warning said eggs from those facilities "have been prepared, packed, or held under insanitary conditions whereby they may have becomecontaminated with filth, or whereby they may have been renderedinjurious to health."

Sparboe Companies LLC issued a statement calling the video"shocking" and saying an internal investigation identified four employees "who were complicit in this disturbing activity" andwere fired this month.

"I was deeply saddened to see the story because this isn't whoSparboe Farms is," owner and president Beth Sparboe Schnell saidin a statement posted on a company website. "Acts depicted in thefootage are totally unacceptable and completely at odds with our values as egg farmers. In fact, they are in direct violation of our animal care code of conduct, which all of our employees read, signand follow each day."

Sparboe, which is headquartered in Litchfield, also said on the website that it has made management changes, taken correctiveactions sought by the FDA, and begun retraining all barn workers inproper animal care procedures.

Sparboe describes itself as the fifth-largest shell egg producer and marketer in the United States, operating seven processingplants supported by 33 egg-laying and pullet production sites inIowa, Minnesota and Colorado. The company says it serves retail,wholesale and foodservice customers in 26 states. Sparboe spokesman Lyle Orwig said Friday the company has a"zero tolerance policy" for any animal abuse or cruelty. He said all employees are trained by a veterinarian and work with a crew leader who also has been trained.

"If he (the crew leader) sees anything, he would automatically correct it if he sees someone doing something wrong," Orwig said.

Oak Brook, Ill.-based McDonald's said the "most alarming actions on video" didn't happen at Sparboe's facility in Vincent, Iowa, which supplied its restaurants, but they violated the standards the company sets for its suppliers. McDonald's also insisted the food it serves is safe.

McDonald's said it got Sparboe eggs via Cargill Inc., which said it was suspending Sparboe as a supplier.

"We will not tolerate mistreatment of animals anywhere in our supply chain," Chris Roberts, president of Cargill Kitchen Solutions, said in a statement. He also said the issues the FDA raised "warrant additional review by Cargill."

Tim Loesch, a spokesman for Wayzata-based Cargill, declined to say how many eggs Sparboe supplied it or how much the company waspaid. Orwig said it was too soon to tell what effect the loss of McDonald's business would be.

"Right now our focus is making sure that we are compliant with everything and get to the bottom of how it could have happened,"Orwig said.

Mercy for Animals isn't satisfied with McDonald's decision to stop accepting eggs from Sparboe, said Matt Rice, the group's director of operations.

"These are company-wide, policy-level abuses," Rice said. "There's a culture of cruelty and neglect at McDonald and its suppliers."

McDonald's said it is participating in a three-year study that compares traditional versus cage-free hen housing systems, but Rice said the company continues to get most of its eggs from hens in battery cages that hold a lot of birds in cramped conditions.

"McDonald's is simply sidestepping the issue now. It's time McDonald's requires all of its suppliers to un-cage hens and finally give these animals the basic freedom to spread their wings, to walk and engage in other natural behaviors," he said, noting that McDonald's has already switched to cage-free eggs in Europe.

Mercy for Animals conducted its investigation from May 23 to Aug. 1, Rice said. The group got its people hired at the farms and sent them in wired with hidden cameras, he said. They "documented daily abuses that would shock and horrify most Americans yet are largely considered standard and acceptable to the egg industry," he added.

Orwig, the Sparboe spokesman, said the undercover taping wastroubling because company employees sign a code of conduct thatthey will report any abuses immediately to a supervisor. In this case, he said, there were no reports.

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